As Hormuz heats up again, Amitabh Kant's warning: India can't be energy independent until...

Former NITI Aayog CEO Amitabh Kant on Thursday called for an "AI revolution" in India's power distribution sector. He said the country cannot achieve energy independence unless it radically reforms its loss-making electricity distribution companies (DISCOMs).

Don't Miss | India's Nanda Devi only inbound LPG vessel at Hormuz as dark transits rise     

Kant said the Hormuz crisis had underlined the urgency of reducing India's dependence on imported fossil fuels through electrification, renewable energy, and storage. 

"The Hormuz crisis was a wake-up call. Energy independence is paramount, and electrification, renewables, and storage are the way forward. But India cannot get there until we radically overhaul our loss-making DISCOMs," he wrote on X.

AI Can Transform DISCOMs, Says Kant

Pitching artificial intelligence as the key to modernising India's power distribution network, Kant said AI could significantly improve operational efficiency and reduce losses.

"AI gives us a once-in-a-lifetime shot at this: predictive maintenance, lower AT&C (Aggregate Technical and Commercial) losses, smarter capex planning," he said.

Kant also endorsed Bengaluru-based startup Pravāh, founded by Mohak Mangal and Dhruv Suri, saying its AI models could transform the sector.

"I just met two brilliant founders, Mohak Mangal and Dhruv Suri, building frontier AI models for the energy stack through their startup Pravāh. Give them a year inside any DISCOM, and they will transform it. I encourage all DISCOMs to engage with them," he said.

India needs more startups building AI solutions for the energy sector, he said, but argued that government procurement rules were holding them back. "We need more founders across the energy stack building such bold solutions. But the government must also fix public procurement; with L1 tenders, startups will never make it," Kant said.

Hormuz Crisis Renews Focus On Energy Security

Kant's remarks come as conflict has returned to West Asia, reviving concerns over the Strait of Hormuz after the collapse of the US-Iran ceasefire and Tehran's strikes on ships in the strategic waterway.

India imports around 87 per cent of its crude oil requirement, with a significant share transported through the Strait of Hormuz.

DISCOM Finances Have Improved, But Challenges Persist

India's power distribution companies have long struggled with mounting financial losses. However, in a turnaround, DISCOMs collectively posted a profit of Rs 2,701 crore in FY25, according to the Ministry of Power.

The improvement came after a collective loss of Rs 25,553 crore in FY24 and Rs 67,962 crore in FY14.

Despite the turnaround, structural challenges remain. A September 2025 study by Prayas (Energy Group) for the Sixteenth Finance Commission estimated accumulated DISCOM losses at Rs 7.08 lakh crore, growing at an average annual rate of 8 per cent.

The study identified rising working capital borrowings, high interest costs and persistent operational inefficiencies as key contributors to the sector's financial stress, underscoring the need for long-term reforms.